Legal Question in Securities Law in California

What's my recourse for lost bond fund dividends?

On Sept. 10, 2001, I arranged to have $3000.00 electronically debited from my checking account to buy more shares of a dividend-paying mutual fund company bond fund, with the purchase to take place the next day. The market was closed from 09/01 to 09/16 due to the terrorist attacks, however, the cash was still withdrawn from my bank on Sept. 12 without me receiving anything for it! I'm told that, at the wery least, I'm due the lost dividends, but the mutual fund company just blows me off. Exactly what am I due and how do I get it? Thank you very much.


Asked on 7/29/02, 9:07 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: What's my recourse for lost bond fund dividends?

You are entitled to an explanation of what happened to your $3,000, and when you find that out, you are probably entitled to its return, perhaps with interest.

The real question here is what happened to the $3,000 -- did the fund receive it, or did it go astray in the transfer process?

I would make inquiries at the bank that initiated the transfer as well as at the brokerage. I can't comment on your being 'blown off' without more particulars as to what that implies.

You need to correspond with the brokerage (and the bank) in writing, after first using toll-free phone service to find the responsible officers.

If all else fails, try to get a free consultation with a local attorney; this might be a matter where the broker could be liable for fees and perhaps punitive damages, possibly making a suit worthwhile, if warranted at all.

Read more
Answered on 7/29/02, 9:40 pm


Related Questions & Answers

More Securities Law questions and answers in California